PM Modi calls urgent CMs meet as West Asia crisis raises economic alarm

Prime Minister Narendra Modi will on March 27 convene a crucial video conference with Chief Ministers of all states — excluding those heading into elections — to assess the cascading impact of the escalating West Asia conflict on India’s economy and supply chains.

Scheduled for 6:30 pm, the high-level interaction signals growing concern within the Centre over the conflict’s potential to disrupt critical sectors. In parallel, the Cabinet Secretariat will hold a separate meeting with Chief Secretaries of poll-bound states, including Tamil Nadu, West Bengal, Assam, Kerala and the Union Territory of Puducherry.

Government shifts into crisis-response mode

The meeting follows a series of rapid-fire consultations in New Delhi. Earlier this week, an all-party meeting chaired by Defence Minister Rajnath Singh brought together senior leaders including Home Minister Amit Shah and External Affairs Minister S. Jaishankar to deliberate on the evolving geopolitical situation.

Prime Minister Modi has also briefed both Houses of Parliament and chaired a meeting of the Cabinet Committee on Security (CCS), underscoring the seriousness of the unfolding crisis.

‘Whole-of-government’ strategy in motion

At the CCS meeting, the Prime Minister directed the creation of a coordinated task force involving ministers and top bureaucrats to ensure a “whole-of-government approach”. Cabinet Secretary T V Somanathan presented a comprehensive assessment of the global situation and outlined mitigation strategies already underway.

Officials flagged risks across a wide spectrum of sectors — from agriculture and fertilizers to petroleum, power, MSMEs, exports, shipping, and financial markets. The government also reviewed India’s broader macroeconomic stability and discussed additional safeguards to cushion potential shocks.

Short-, medium-, long-term risks mapped

According to the Prime Minister’s Office, the West Asia conflict could trigger significant short-, medium-, and long-term disruptions in the global economy, with direct implications for India’s growth trajectory and supply chains.

In response, the Centre has set up seven Empowered Groups of Secretaries tasked with continuously monitoring the situation and formulating targeted interventions. These groups mirror the crisis-management architecture deployed during the COVID-19 pandemic, signalling a calibrated and anticipatory policy response.

With geopolitical tensions deepening, Friday’s meeting with Chief Ministers is expected to align state-level preparedness with the Centre’s evolving strategy — as India braces for potential ripple effects from a volatile global landscape.